Central bank benchmark borrowing costs are now more than 2 percentage points lower in Europe than the US, a divide that has caught the attention of President Trump.

CDs tend to follow the Fed's direction. When the Fed raises or lowers its benchmark rate, banks typically adjust CD rates by a similar amount. If rate cuts are on the horizon, CD yields may fall too, sometimes even before cuts happen.

U.S. Treasury yields are set to decline further according to bond strategists who are clinging to expectations the Federal Reserve resumes cutting interest rates after pausing for more than half a year even as dealers are set to underwrite a deluge of new supply.

President Donald Trump has repeatedly demanded the Federal Reserve slash interest rates. But Fed officials have stood pat, waiting to see how his administration’s sweeping policy changes affect the economy first.

So far this year, the Federal Reserve has kept interest rates steady. But when will that change, and how could it impact what you earn on your savings?

Cooler-than-expected U.S. inflation last month deepened conviction in financial markets on Wednesday that the Federal Reserve will start cutting interest rates by September and deliver a second reduction by the end of this year.

While Fed rate decisions influence what you earn on savings, the type of bank and account you choose matters more than the actual rate change, making it important to pick high-yield options that respond to Fed moves.

The economy has been sending mixed signals. While inflation is finally showing signs of cooling, undeniable cracks have surfaced in the labor market. Despite this uncertainty, pressure is rapidly intensifying on the central bank to slash interest rates when policymakers convene for the next FOMC meeting in mid-June.

That’s when the Federal Reserve Board meets to consider interest rates, a gathering that the White House has been – to put it mildly – strongly trying to influence. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter💰💵 The Trump Administration wants the Fed to slash rates immediately by almost half after May inflation and job rates basically held steady despite fidgety action earlier this year.